An aggregate economy with different size houses

• 成果类型: Article; Proceedings Paper
• 署名作者: Rios-Rull, Jose-Victor; Sanchez-Marcos, Virginia
• 署名单位: University of Pennsylvania; Universidad de Cantabria
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1162/JEEA.2008.6.2-3.705
• 发表日期: 2008
• 页码: 705-714
• 关键词: income

摘要

We build an aggregate model with different size houses and liquid assets. Typical households are born, are subject to idiosyncratic earnings risk, and save for both life-cycle reasons and housing reasons. Typically, a subset of these households, after accumulating some assets, make a down payment and buy a small starter's house or flat. As time passes, some households upgrade to a larger and nicer house. Households with houses may also eventually downgrade to a flat or even to no house and flat owners may sell. Our specification attempts to replicate some important features of modern aggregate economies: The distribution of earnings and of housing and non-housing wealth as well as some macroeconomic aggregates, including features of the mortgage issuing sector.